Monday, October 1, 2012

Alphas, P-Values, and Confidence Intervals, Oh My!

Trying
to remember what the alpha-level, p-value, and confidence
interval all mean for a hypothesis test—and how they relate to
one another—can seem about as daunting as Dorothy’s trek down the
yellow brick road.
Rather than sitting through a semester of Intro Stats, let's get
right to the point and explain in clear language what all these
statistical terms mean and how they relate to one another.

What
Does Alpha Mean in a Hypothesis Test?

Before you run any statistical test, you must first determine
your alpha level, which is also called the “significance level.” By
definition, the alpha level is the probability of rejecting the
null hypothesis when the null hypothesis is true.
Translation: It’s the probability of making a wrong
decision.
Thanks...Read More » »